The first casino within the US outside Nevada completed a deal to maintain it operating by letting lenders take the gambling venue in exchange for dropping the debts owed.

Resorts Atlantic City, notable for being the primary modern legal casino outside Nevada, was released by its owners to lenders in a deal approved by regulators yesterday. The brand new Jersey Casino Control Commission said it will allow the casino's lenders to take control of the gambling facility in exchange for a cancellation of debts owed.

The move allows the primary casino to open in Atlantic City after the legalization of casino gambling in 1978 to continue to function. With no deal, the gaming venue was almost sure to close, as operators could not pay the mortgage and other bills.

A new corporation referred to as RAC Atlantic City Holdings LLC was formed by the consortium of lenders, which incorporates Wells Fargo, to function Resorts. Regulators gave the brand new company a one-year casino license.

Nicholas Ribisi, who co-owned the casino with Colony Capital, will continue to hold an interest within the resort, in addition to manage the valuables. Ribisi also retains ownership of the gaming equipment throughout the casino.

Ribisi vowed to stick involved, and told the brand new York Times that he'd work to enhance the casino and potentially buy it back from the holding company.

Resorts' debts were revealed to be $337 million greater than the sum of its assets.

Published on November 20, 2009 by VirginiaMaddox

Read More... [Source: Atlantic City Casino News]